Does Tencent Hate Riot?

Tencent’s internal development strategy is defined by a competitive, Darwinian model often described as a shark womb, where internal studios are encouraged to compete against one another to produce the most successful titles. Rather than prioritizing the protection of individual intellectual properties or avoiding cannibalization, the company fosters parallel development processes. This approach allows Tencent to test multiple versions of a concept in the market simultaneously, ultimately backing the product that demonstrates the strongest performance metrics.

This methodology is evident in the history of mobile battle royale and MOBA titles. In the battle royale space, Tencent’s internal studios, TiMi and Quantum/Lightspeed, developed competing versions of the same genre. Following the success of the Quantum-developed version, TiMi pivoted to higher-value IP partnerships, such as the development of Call of Duty: Mobile. A similar pattern emerged in the MOBA sector, where TiMi’s Honor of Kings achieved long-term dominance in China despite the existence of League of Legends. While this initially caused friction with Riot Games, the internal competition eventually pushed Riot to collaborate on a mobile version of its flagship title, League of Legends: Wild Rift.

The announcement of Pokemon Unite further illustrates this strategy of IP escalation and internal rivalry. By partnering with a massive global franchise, TiMi continues to challenge existing market incumbents. The success of these titles is heavily influenced by regional preferences, with Honor of Kings succeeding in Asia partly due to an aesthetic style that resonates with local demographics, including a large female player base. Ultimately, Tencent’s priority remains the success of its broader portfolio, accepting that internal cannibalization is a necessary byproduct of identifying the most effective products for diverse global markets.